Tuesday, 31 May 2016

Question 1.3

Question 1.2

Techno-economic Paradigm


uTechno-economic paradigm shifts are at the core of general, innovation-based theory of economic and societal development as conceived by Carlota Perez.

uOn this basis it defines technological revolutions, examines their structure and the role that they play in rejuvenating the whole economy through the application of the accompanying techno-economic paradigm.
This “over-arching meta-paradigm” is in turn defined in its components and its impact, including its influence on institutional and social change

Question 1.1


uDigital divide refers to economic and social unfairness towards getting access to information and communication technologies which varies from country to country.

uThis technology can include the telephone, television, personal computers and the Internet.

uThe term became popular in the late 1990s, among concerned groups, such as scholars, policy makers, and advocacy groups.

uThe government can increase access to the internet by adding Wi-Fi poles to areas that are deprived of access and encourage all stores to supply Wi-Fi to paying customers. We could also hold fund raising events to not only raise funds but creating awareness within the communities.

uThe government should also supply common working environments where they supply both computers and Wi-Fi to be accessed by various communities in need who are deprived from access.

uReducing the cost of Digital Divide

uIncreasing Knowledge/Skills of public
Social Capital



uSocial capital is the joint value of all social networks and the preferences that arise from these networks in assisting each other.

uImpact of digital divide to social capital occurs when other people cannot access or have limited access to social networks.

uVarious types of social capital may affect people's access and use of the Internet.

uThis will result in a person not being part of the global economy. Lacking information and struggling to compete in digital world.

Knowledge Capital

uKnowledge Capital is an intangible asset that comprises the information and skills of a company's employees, their experience with business processes, group work and on-the-job learning.
uThe physical factors of production has nothing to do with knowledge capital. (land, labor and capital)
uKnowledge capital refers to the skills that employees share with each other in order to improve efficiency in and around the business, rather than on physical items.
uHaving employees with skills and access to knowledge capital puts a company at a competitive advantage.
uThe digital divide would put constraints on the amounts of knowledge that employees can share with one another, their access to knowledge capital will directly effect the competitive advantage over other businesses and put the business at a weak standing point.

The digital divide will also affect the skills of the employees as they will have less access to knowledge and this would restrict their skill development.
Human Capital

uHuman capital is a term made popular by Gary Becker an economist from the University of Chicago and Jacob Mincer.
uIt refers the knowledge, habits, social, creativity and character attributes.
uIt is the ability for people to perform labor so as to produce economic value.
uThe digital divide restricts human capital as it gives constraints to how people perform labor by restricting the amount of knowledge, social interactions and their personal habits they have access to.

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